Company Logo

August 07, 2007

Market Activity Summer 2007

One of the most commonly asked questions that we are asked as Realtors are: "How is the market doing?"; "Are there any areas that are better than others?"; "What is the average price per square foot in our neighborhood?"

I have always liked to have something I can look at and compare when I analyze market data. The link below will provides city by city information for a more exact look at our market and which areas are most popular. The data for this analysis came from the Multiple Listing Service over the last 60 days. Just click on the file to view the analysis.

The Minneapolis Association of Realtors completes a Housing Supply Outlook report every month. The most current one is for the Month of July 2007. According to this report, it would take approximately 9.6 months for the market to absorb the current inventory of homes being offered for sale. In comparison, last year at this time the supply was much lower at only 7.1 months. During the faster paced markets in the past several years, this market has averaged between 3 and 5 months supply of houses on the market.

Now I suppose one asks "what in the world does it mean to have 9.6 months worth of houses on the market?" The Housing Supply Index is commonly used to measure the quality of the market. 9.6 months worth of houses refers to the number of months it will take for the all of the active listings on the market to sell. According to the Minneapolis Area Association of Realtors the market is considered balanced between buyers and sellers when there is roughly a 5-month supply of homes available for purchase.

Given this definition we are definitely in a buyers market and right now is a great time to buy a house even if you need to sell yours first. Although it may take time to sell your home, it has not been this affordable to obtain your dream home in recent years and it may not be as easily attainable in the coming years as it is now! The segment of the market that is hardest hit with longer days on market is higher end homes and this fact allows these homes to be more attainable to the general market than in recent years!

Comments

Market Activity Summer 2007

One of the most commonly asked questions that we are asked as Realtors are: "How is the market doing?"; "Are there any areas that are better than others?"; "What is the average price per square foot in our neighborhood?"

I have always liked to have something I can look at and compare when I analyze market data. The link below will provides city by city information for a more exact look at our market and which areas are most popular. The data for this analysis came from the Multiple Listing Service over the last 60 days. Just click on the file to view the analysis.

The Minneapolis Association of Realtors completes a Housing Supply Outlook report every month. The most current one is for the Month of July 2007. According to this report, it would take approximately 9.6 months for the market to absorb the current inventory of homes being offered for sale. In comparison, last year at this time the supply was much lower at only 7.1 months. During the faster paced markets in the past several years, this market has averaged between 3 and 5 months supply of houses on the market.

Now I suppose one asks "what in the world does it mean to have 9.6 months worth of houses on the market?" The Housing Supply Index is commonly used to measure the quality of the market. 9.6 months worth of houses refers to the number of months it will take for the all of the active listings on the market to sell. According to the Minneapolis Area Association of Realtors the market is considered balanced between buyers and sellers when there is roughly a 5-month supply of homes available for purchase.

Given this definition we are definitely in a buyers market and right now is a great time to buy a house even if you need to sell yours first. Although it may take time to sell your home, it has not been this affordable to obtain your dream home in recent years and it may not be as easily attainable in the coming years as it is now! The segment of the market that is hardest hit with longer days on market is higher end homes and this fact allows these homes to be more attainable to the general market than in recent years!